Paramount has agreed to postpone the closure of its $81 billion acquisition of Warner Bros. Discovery in the United States until next year. This decision was made as a judge reviews a challenge from 12 states aiming to prevent the deal from going through.
The delay means that Paramount will not finalize the merger until June 1, 2027, or until a court ruling is issued regarding the states’ lawsuit. The move follows a recent temporary restraining order granted by U.S. District Judge Araceli Martinez-Olguin, who acknowledged the states’ concerns about the merger potentially reducing competition.
Describing the agreement as a “significant win,” Paramount emphasized that it paves the way for a trial based on evidence. The company, acquired by Skydance last year, sees this as the most expedient method to demonstrate that the merger benefits competition and the broader industry.
The legal battle was initiated by 12 states, with California at the forefront, alleging that the Paramount-Warner merger would stifle competition in Hollywood, limiting choices for consumers, especially movie enthusiasts and cable subscribers. New York Attorney General Letitia James, part of the group opposing the merger, stated that Paramount’s acquisition of Warner Bros. would negatively impact various industry stakeholders.
A potential merger between Warner Bros. and Paramount would unite two of the last five legacy studios in Hollywood, along with various TV networks, streaming content, and news outlets. This union would also involve HBO Max, which currently has exclusive rights in Canada through the Bell Media-owned streaming platform, Crave.
Bell Media confirmed that its agreement with Warner Bros. Discovery would ensure HBO and HBO Max content remains on Crave in the foreseeable future, as reported by Broadcast Dialogue and The Hollywood Reporter in March.